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BMW to save billions by 2012, with the help of Mercedes-Benz

News | May 8th, 2010 by 27
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BMW and Mercedes…an interesting partnership that many of us have not seen it coming years ago. In a discussion with Bloomberg, BMW announced that it …

BMW and Mercedes…an interesting partnership that many of us have not seen it coming years ago. In a discussion with Bloomberg, BMW announced that it is well on track to meet – and even exceed its goal of reducing spending on components and supplies by $5.2 billion by 2012, partly due to a partnership with the Stuttgart-based and old competitor, Mercedes-Benz.

“We can say that from today’s perspective we will certainly and easily reach the 4 billion-euro savings goal, and even significantly surpass it,” said Herbert Diess, the management board member responsible for the cuts.

Just days ago, BMW announced first-quarter net income of $417 million – surpassing the expected earnings of just $340 million. These profits represent an increase of $196 million compared to the same quarter in 2009.

bmw-mercedes-benz

The increase in profits came from strong sales of the new 7 Series, a highly profitable vehicle according to BMW officials. An important part of costs savings came from the prosperous partnership with Mercedes.

The two German rival luxury car companies are working hand in hand to cut costs and talks between BMW and Mercedes have yielded new projects over the past several months that will help each company reduce spending by about 100 million euros a year by 2012.

In the past, Mercedes-Benz and BMW have discussed many times about possible partnerships and plans to share research and manufacturing in order to cut costs during the financial crisis. The two companies were already developing together hybrid power units and conducting joint purchasing of components.

[Source: LeftLaneNews ]

  • Fratz

    I hope this partnership would give BMW a financial advantage in cutting the costs as much as Audi(VW family) are able to do.

  • etuoyo

    Is this a sign that BMW see Audi as the new threat to their dominance and not Mercedes?

    • lennardt

      a cooperation with bmw isn’t attractive to audi, because audi already has everything they need at vw. but mercedes and bmw both don’t have a partner who can supply them as good as vw does at audi. audi can use all vwparts. mercedes and bmw are building mostly the same car sizes so the can stop developing the same thing both to do it together, that’s just cheaper and -i hope- better.

  • Giom

    A billion saved, is a billion earned!

    In my view, this is exactly why BMW and MB will survive without compromising their respective brands.

    Great move!

  • plaxico

    Man !!!!! i was reading this link youve got ” Automobile Mag: Great Rivalries -Mercedes Benz vs BMW” its dated 25.8 2009…..)))))) Back than i wasnt aware of this site .MY GOD… i was laughing my ass off. Viper SINGLE HANDEDLY KICKED YOUR SORRY ASS bmw fans……….Great job mate! Everything he said there is true!

    Viper ,cheers buddy!!!!!!

    • lennardt

      i don’t know that the partnership of mercedes and bmw was only seen by viper. bmw and mercedes are building in the same segments so it’s just logic to do that step and i appreciate that. it’s just stupid to think that this partnership is a weakness.

      • wazon8

        As far as I remember, it was MB that put more work in backing up this cooperation. So, if it’s evidence of weakness of any of these two companies, it’s rather MB’s weakness. But in real world, viper’s stupid remarks don’t matter, both companies will earn few billions and could use this money for other purposes. And of course, it deosn’t amount to that BMW starts to worry more about Audi than MB. Despite artifically bloated speculations of how much cars Audi sells, stats concerning cars above 50000$ showed where BMW and MB are and where Audi is. Of course, competition between BMW and MB will be continued, sharing some parts is not providing the cars with similar characteristics!

        • plaxico

          waz dude……. its artificially not artifically .Learn to spell

          • lennardt

            ok, wir können ja deutsch reden und dann mal sehen, wie deine Grammatik- und Vokabelkenntnisse sind :-)

          • XC

            Plaxico, plaxico… your stupid remarks (and viper’s) just probe you both are just a pair of kids (mentally). The real deal is where the money is. Both companies are the cream of the crop and a partnership between them will just be for the better. People here have been asking you guys to provide sensible, intelligent remarks, but the fact is that you can’t provide any. You’re just clueless. And simple-minded.

          • wazon8

            Plaxico, you would be entitled to making such unpolite remarks, if you knew something about English grammar. But the problem is that you don’t even know standard rules govering the behaviour of expressions common to each language with origins in Latin. Man, what did happen to: capital letters, commas, full stops, exclamation points, the rule according to which one should give space after comma or full stop, not before it and similar in your written sentences? Are you able to write something without errors in your native language? I doubt, because you wrote something offensive in you native language few months ago and from the grammatical point of view, sentences looked very similar to these ones you provide in English right now. Learn grammar! Because spelling and typing errors are far less embarassing than the total lack of familiarity with grammar, which is vivid in each of your writing sample.

            But honestly, if you don’t have any substantive reply to above remarks, live with it and don’t prove by sending these stupid posts that you know shit about real world in which both companies have to exist.

          • Arash

            Great spelling plaxico!
            It’s NOT its.
            Learn to spell dearest plaxico! Misspelling ‘artificially’ by a non-native is just a simple mistake, but missing the apostrophe by you is mere ignorance!
            And DO NOT judge people by their spelling!
            Cheers!

    • wazon8

      You don’t have both ability to argue in favour of some claim and ability to assessing whether some arguments are sound. But in most cases, these two are closely related, so it shouldn’t be surprise that you lack both of them.

  • BMfan

    plaxico=viper. That means, plaxico+viper=1

  • Giom

    Lennardt, I agree! My native tongue is afrikaans, and even tho I speak eng well, now and then a gramatical or spelling error would sneak by. I think that a lot of commentators on this forum are foreign, therefore, normal people with intellect wouldn’t worry about spelling and grammar.

    I guess, when you’ve run out of intelligent comments – and you’re defending an inferior marque, these are the only things left to critisize.

    • plaxico

      giom, a normal lad with intellect……..i dont have the will to explain juniors like yourself that sky is blue and that sun is golden ………. because u should know that by now
      btw.giom, a normal lad with intellect…..its gramatical with 2 ”m”, critisize with c not s. Learn to spell

      • Giom

        Thanks for vindicating my point.

        Gosh, I can’t believe you fell for that.

        Say no more…. PLEASE!

        • lennardt

          :-D he just made out exactly what you said. it’s like you were saying that someone who’s feeling stupid should say ‘i am’ and plaxico did it. so nice one, Giom! :-)

          • plaxico

            Lennardt remind me to throw your e 30 with m package in the sea and k.t.l.s. out of your schwaben ass next time you visit hvar :-)

          • lennardt

            oh god.. i swear the croatians drive their jugo that hard that you probably are able to do that with me :-D
            -> i really love the people of your country and of course hvar

        • plaxico

          a-ha,right……explain your 3rd grade teacher tomorrow in school that your illiteracy is just a fun decoy for everybody

      • Josh B

        Plaxico Im 16 years old and honestly i find it both hilarious and entertaining reading your inane comments. Who are you? I have an image of some thirty year old uneducated low class ass hole who suppresses his own failure both socially and financially by attempting to belittle others by criticizing their spelling. Grow up. Your superfluous comments are not needed on a web blog surrounded by adults. Grow up and get lost.
        (BTW- its “I dont have the will to explain TO juniors SUCH AS yourself that THE sky is blue and that THE sun is golden….” You cant even structure a sentence properly haha)

  • Auday

    more cheap plastic? more off the shelf components GM style?

    I just hope that this $4m saving will be used in R&D or in making some long awaited BMW models like the super car, or maybe it will just go to Miss Quandt to spent on a new affair.

    • bob

      Really? Did you really want to go there?!

    • lennardt

      oh please just a bmw supercar if its as superior to its competitors as for example s1000rr is. if it isn’t the absolutely best, bmw shouldn’t build one, because if bmw did it, i would want that car to be the best, not compared to MB sls (nice car, but not half as stunishing as the ancestor) or audi r8 *laughing*, but for example bughatti veyron, but that car is so stupid (refueling after 20 minutes of topspeed..) that bmw shoud not low down to it. bmw just should keep building cars like m3.

  • Auday

    My ideal BMW super car ( or a 2 seater mid engine if we dont want misuse the super car term) would be a mid size moderate 450-500hp (modified version of the S65 V8 maybe) with a weight of sub 1200kg, super rigid chassis, near 50-50 weight distribution, small-ratio heavy steering wheel, 6 spd manual as a standard (I know it’s not gonna happen) with an optional 7spd DCT (good enough), and handling that would kill the Porsche GT3 RS on the Ring.

    Bugatti Veyron is a 2 tons straight line cruise missile, it would be a disgrace for BMW to make a car like that,…IMO BMW should go after the Ferrari 430/458, Lambo Gallardo, Aston Vantage, audi R8 and Porsche GT3 if they are thinking of a 2 seater car, apparently they are not anyway :)

  • kcsnayud

    BMW is making a supercar, the vision dynamics concept. But:

    1. It’ll be a hybrid.
    2. It’ll only have 345hp from an INLINE 3!!!
    3. It wont be sold till 2014.
    4. PLaxico shut the beep up

    There.

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